Tennessee gas prices slip as gasoline inventories build

Staff Report
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Updated May 7, 2019 at 1:59 PM

NASHVILLE — For the first time in weeks, the average gas price in Tennessee has declined.

The state average is $2.60 per gallon for regular unleaded, which is 2 cents less than a week ago, but still 8 cents more than this time last month and 8 cents higher than this time last year, AAA reported.

The national gas price average is $2.89, only 1 cent more than last week’s average, 16 cents more than a month ago and 8 cents more than this time last year. Most states are seeing moderate jumps and even declines at the pump, according to AAA.

“In a surprising turn, gasoline inventories built for the first time since early February and contributed toward the national average increasing by only a penny,” said Stephanie Milani, Tennessee public affairs director for AAA, in a press release. “While gasoline demand remains robust, this week 27 states saw gas prices decrease or hold steady with Delaware (-4 cents), Kentucky (-3 cents) and North Carolina (-3 cents) seeing the largest declines.”

Local averages

• Johnson City ($2.58)

• Kingsport-Bristol ($2.58)

Most expensive gas prices in the state

• Nashville ($2.65)

• Jackson ($2.64)

• Memphis and Morristown ($2.60)

Least expensive gas prices in the state

• Chattanooga ($2.49)

• Cleveland ($2.51)

• Clarksville-Hopkinsville ($2.57)

What about oil?

At the close of Friday’s formal trading session on the New York Mercantile Exchange, West Texas Intermediate crude increased slightly by 13 cents to settle at $61.94, AAA reported.

Although prices inched up on Friday, crude saw losses last week after new concerns about U.S. oversupply emerged. The Energy Information Administration’s weekly petroleum report revealed that domestic crude inventories jumped significantly last week by 10 million barrels. They now sit at 470.6 million barrels, which is nearly 35 million barrels more than the level last year at this time.

Crude inventories have not been this high since September 2017, according to EIA’s data. An all-time record high for domestic crude production last week — at 12.3 million barrels per day — contributed to the substantial growth in U.S. crude stocks, which likely also was a reason crude oil saw losses on the NYMEX last week.

Market observers will look toward EIA’s weekly report this week to see if the growth in crude stocks continues ahead of summer.